Sanjay Kishan Kaul, J.:— (Oral)

1. Admit.

2. Learned counsel for the respondent accepts notice.

3. At request of learned counsel for the parties, the appeal is taken up for final disposal.

4. An open tender was floated by the Railway Board bearing no. CS-110/1994 in which the appellant participated and was declared successful resulting in a letter of acceptance dated 03.02.1995 written by the appellant which finally culminated in a contract inter se the parties dated 09.02.1995 for supply of 5124 metric ton of high tensile wires. The total value of the contract was Rs.9,99,18,000/-. The rates and value was subject to price variation in terms of clause 13 of the Special Conditions of the Contract . A second contract was entered into on 05.05.1995 for supply of 8741 metric ton of high tensile wires with an associate company of the appellant M/s Hind Wire Industries Ltd.

5. The appellant under the first contract supplied 98.61 per cent of the total contracted quantity and the bank guarantee furnished for performance was discharged by the respondent/Railways. However, in respect of the second contract, in view of labour problems being faced by the associate company of the appellan